Question

Other data not yet recorded at December 31 include Insurance expired during the current year, $6. Wages payable, $4. Depreciation expense for the current year, $9. Income tax expense, $7. Required: 2. Using the adjusted balances, give the closing entry for the current year. (If no entry is required for a transaction/event, select "No journal entry required" in the first account field. Enter your answers in thousands.)

Answer 1

Answer: Please refer to the explanation section for journals

Step-by-step explanation:

DR = DEBIT CR = CREDIT

DR Insurance expense 6000

CR Prepaid insurance 6000

expired insurance expense. prepaid asset account decreases on the credit side .The Prepaid insurance asset should be reduced when insurance expires.

DR Wages expense 4000

CR Wages Payable 4000

wages payable (liability) increases because of wages incurred during the year increase .Wages payable account increases on the credit side

DR Depreciation expense 9000

CR Accumulated Depreciation 9000

depreciation expense increase the accumulated depreciation account

accumulated depreciation account increases on the credit side

DR Income Tax expense 7000

CR Income tax payable (liability) 7000

Income tax expense incurred during the year.

income tax expense incurred during the year increases income tax payable (liability) . Income tax payable increases on the credit side

Answer 2

Using the adjusted balances, give the closing entry for the current year.

Step-by-step explanation:

1

Db Insurance expense 6000

Cr Prepaid expenses 6000

2

Db Wages payable 4000

Cr Cash 4000

3

Db Depreciation expense 9000

Cr Accumulate depreciation 9000

4

Db Income tax expense 7000

Cr Tax payable 7000